Lumino Industries IPO: GMP at 60%; analysts recommend 'subscribe' tag

Lumino Industries IPO: The ₹700-crore Lumino Industries' initial public offer (IPO) opens for bidding on August 27 and closes on August 31. The offer is a mix of a fresh share sale of ₹500 crore and an offer for sale (OFS) of ₹200 crore.

 

Lumino Industries IPO price band has been fixed at ₹78 to ₹82 apiece, with a lot size of 182 shares. The company plans to use the fresh funds for repayment of debt, capex for purchase of equipment and machinery, and the rest for general corporate purposes.

 

It is an integrated EPC and manufacturing company focused on conductors, power cables, electrical wires (under the Lumicon brand), and other specialised electrical products.

 

 

The company's total order book increased from ₹1,941 crore in March 2024 to ₹3,150 crore in March 2026. The company is well positioned to benefit from increasing investments in HTLS re-conductoring and high-voltage transmission infrastructure, said SBI Securities.

 

The company derives a significant portion of its revenue from State Electricity Boards (SEBs) and public sector power utilities, exposing it to customer concentration risk.

 

It delivered a robust Revenue/EBITDA/PAT CAGR of 20.4 per cent/28.3 per cent/35.9 per cent, respectively during the FY24-FY26 period, supported by strong execution capabilities, expanding manufacturing capacities, and a healthy order book. 

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Brokerage review on Lumino Industries IPO

Here's what brokerages recommended on the offer:

 

SBI Securities | Subscribe

LIL delivered healthy return ratios, with ROE of 21.9 per cent and ROCE of 24.3 per cent in FY26. The EBITDA margin of LIL is the highest among its peers and is expected to improve further with an increasing share of higher-margin EHV substation projects. Debt repayment through the IPO proceeds should significantly reduce interest costs in FY27.

 

At the upper price band of Rs 82, the issue is valued at a P/E of 15.6x FY26 earnings on a post-issue basis, significantly lower than its peers. Given its diversified order book, integrated business model, strong return profile, and favourable industry outlook, we recommend SUBSCRIBE to the issue at the cut-off price.

 

Swastika | Subscribe for listing gains & medium-term

LIL is priced at a meaningful discount to comparable EPC and cable peers on both P/E and growth-adjusted valuation metrics. It has reported the highest Return on Net Worth (RoNW) among its key peers, indicating efficient utilisation of shareholder capital.

 

The company delivered consistent three-year growth with a robust 11.71 per cent EBITDA margin, while a significant portion of IPO proceeds is earmarked for debt reduction, which could lower finance costs going forward.

 

High dependence on government and PSU clients, contributing 53 per cent–86 per cent of revenue, exposes the business to tender-driven and potentially lumpy cash flows. The stock may appeal to both listing-gain and medium-term investors, although prudent position sizing is advisable given the high customer concentration risk.

 

Lumino Industries IPO GMP

The grey market premium (GMP) for Lumino Industries' IPO remained healthy, according to websites that track the unofficial market. Lumino Industries IPO GMP today is ₹50, suggesting a listing price of ₹132, up 61 per cent.

 

The shares of Lumino Industries are slated to list on BSE and NSE with a tentative date set as September 3. 

 

Monarch Networth Capital, JM Financial and Motilal Oswal Investment Advisors are the book-running lead managers.

 

Disclaimer: Views and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers' discretion is advised.